The deal comes hot on the heels of News Corp's $US580 million
($A776 million) acquisition of US-based online entertainment
company Intermix Media, and the purchase of Scout Media, which
publishes sports magazines and runs a network of sports
websites.

"With the addition of IGN, Intermix and Scout Media to the
existing Fox-branded sites, News Corporation's US web traffic will
increase to nearly 70 million unique monthly users and more than 12
billion page impressions per month, putting the company in the top
echelon of most trafficked sites on the internet today," News Corp
said.

"The combined sites will also provide a powerful
cross-promotional opportunity for Fox's television and film content
and enable the company to more efficiently introduce new products
and services using its enhanced web presence."

Murdoch, News Corp's chairman and chief executive officer,
signalled that the group was on an aggressive hunt for internet
assets last month, saying the print, television, film and internet
giant had no greater priority than to expand its internet
presence.

Yesterday Mr Murdoch said that with the acquisition of IGN and
its 28 million unique users, News Corp had gone a long way toward
achieving two of its key strategic objectives in its efforts to
become a leading and profitable internet presence.

"First, we have significantly enhanced our online reach,
strengthening our position as the fifth most trafficked presence on
the web," he said. "We also become the fourth largest network in
terms of monthly page impressions.

"And second, we have furthered our strategy to leverage the
unique competencies the company enjoys with its news, sports, and
entertainment assets to create a leading internet destination.

"By acquiring IGN and its compelling sites, we now have top
entertainment sites to go along with FOXSports.com, as well as our
myriad news sites, headlined by FOXNews.com."

News Corp has also been expanding its internet presence in
Australia, with its local arm News Ltd making a $94 million
takeover bid for online property group realestate.com.au.

IGN's major video game-related properties include IGN.com,
GameSpy, GameSpy Arena, FilePlanet and TeamXbox, and attract one of
the largest concentrated audiences of young males on the internet,
News Corp said.

News Corp will buy IGN for approximately $US650 million in cash,
with the transaction expected to be finalised in the fourth quarter
of 2005.

IGN chief executive officer Mark Jung will continue in his role
following the completion of the acquisition.